Mexico follows Chile into primary, sells $2.25 billion bonds; Korea’s Woori Bank does deal

By Aleesia Forni

New York, Jan. 13 – United Mexican States sold $2.25 billion of 10-year notes amid an improvement in market sentiment on Wednesday.

The sovereign’s bond comes on the heels of Tuesday’s $1.3 billion bond from Chile, which sold inside initial price thoughts.

In other primary happenings, Korea’s Woori Bank sold $500 million of five-year notes.

Mexico prices tight

Mexico priced a $2.25 billion issue of 4 1/8 % global medium-term notes, series A, due Jan. 21, 2026 on Wednesday at Treasuries plus 210 basis points, according to a market source.

Pricing comes at the tightest side of guidance set in the Treasuries plus 215-bps area.

The notes (A3/BBB+/BBB+) were issued under the sovereign’s $110 billion global medium-term note program.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the managers.

Mexico intends to use proceeds of the sale for general purposes, including the refinancing, repurchase or retirement of domestic and external debt.

Woori Bank new issue

Moving to Asia, Korea’s Woori Bank sold $500 million 2 5/8% notes due July 20, 2021 (A1) at Treasuries plus 112.5 bps, a market source said.

The notes were talked in the 115-bps area over Treasuries.

Barclays, Credit Agricole, HSBC, J.P. Morgan Securities LLC, Societe Generale and Commerzbank were the bookrunners for the Rule 144A and Regulation S deal.

The lender is based in Seoul.

Ukraine mostly flat

Ukraine’s corporate bonds were mostly unchanged on light activity, a market source said.

Sovereign bonds, meantime, slowed their recent gains to close mostly flat.

Chile details sale

Chile detailed its $1,349,122,000 offering of 3 1/8% 10-year notes (Aa3/AA-/A+) that priced at Treasuries plus 130 bps in an FWP filed with the Securities and Exchange Commission.

Pricing was at 97.627 to yield 3.407%.

The notes were talked at Treasuries plus 140 bps.

BofA Merrill Lynch, Citigroup, HSBC and Santander are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds from the dollar notes will be used for general governmental purposes and to pay the purchase price for outstanding debt securities tendered and accepted under a tender offer.

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